The T-Mobile and Sprint merger would result in significant consolidation of the U.S. market and that’s something that the Justice Department has not been too keen about. That’s why Dish has been in talks with the two carriers to acquire the prepaid carrier Boost Mobile. According to a new report, Dish has reached an agreement with T-Mobile and Sprint for Boost Mobile worth $1.5 billion and spectrum assets for an additional $3.5 billion.
What that would essentially do is enable Dish to take Sprint’s place as the fourth biggest carrier in the United States. The Justice Department has wanted to maintain the status quo which includes four competitors and it seems that reaching this deal with Dish is enough to assuage the department’s concerns.
Bloomberg reports that Dish will get a “seven-year wholesale agreement allowing it to sell T-Mobile wireless service under the Dish brands.” That will provide Dish with ample time to improve its own infrastructure. T-Mobile will be responsible for three years of operational support as prepaid customers transition to becoming Dish customers.
A public comment on this deal hasn’t come in as yet from Dish, T-Mobile or Sprint for that matter. However, FCC filings have confirmed that there have been detailed talks on this merger. The deal will allow Dish to set about competing in a whole different market.